Allied Gold's $4 billion sale to China's Zijin collapses, secures $295 million investment
- The companies say they mutually agree not to extend the July 29 outside date
Allied Gold said on Wednesday its planned C$5.5 billion ($3.90 billion) sale to China’s Zijin Gold had been terminated after the companies concluded they were unlikely to satisfy closing conditions by the agreed deadline, with Zijin instead agreeing to invest about $295 million for a 9.2% stake.
U.S.-listed shares of Allied Gold were down over 13% in premarket trading.
The companies said they mutually agreed not to extend the July 29 outside date because there was “no reasonable likelihood” the remaining conditions would be met within a reasonable period.
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The companies announced the deal in January, when Zijin agreed to acquire Allied for C$44 per share, valuing the Canadian gold producer at about C$5.5 billion.
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